The chancellor Philip Hammond has once again failed to deliver for private landlords, with yesterday’s rather low-key Spring Statement yet another missed opportunity to prop up the housing market and boost the supply of much needed private rented properties by supporting buy-to-let investors.
Despite the slowdown in the buy-to-let market, with activity levels continuing to drop, Hammond opted not to reverse the additional 3% stamp duty surcharge on second homes, including buy-to-let properties, nor reinstate the mortgage interest tax relief for buy-to-let landlords in the Spring Statement yesterday.
The concern is that this could lead to a further reduction in the number of small and individual buy-to-let landlords investing in the private rented sector, which could mean more landlords opting to come out of the PRS, creating reduced supply or increased costs which could again mean a hike in rents.
Despite the prospect of a rise in rents, the chancellor focussed on boosting homeownership figures, with the announcement of a new £3bn Affordable Homes Guarantee Scheme.
He also announced funding of £717m from the Housing Infrastructure Fund to unlock 37,000 new homes across England.
But while this may be a step in the right direction, the government’s plans simply do not go far enough, according to Phil Spencer, the presenter of Location, Location, Location and co-founder of Move iQ.
He said: “Any boon to Britain’s chronic housing shortage is, of course, not to be sniffed at - but the chancellor’s plans simply do not go far enough.
“Britain needs a long-term, apolitical and impartial plan to build the homes we so desperately need and not short-term soundbites to keep prospective voters happy.
“Sorting out Britain’s housing crisis will not be a quick-fix; and certainly won’t be accomplished over any one government’s time in power.
“It’s time that housing experts were brought into the process of developing a strategic housebuilding plan - one that can’t be with tinkered with for the purpose of gaining votes every time a general election is on the horizon.”
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Just digest this waiver. This is Big Brother and LT is stopping anyone from making a comment just in case it upsets someone! Well so what if it does this is what is known as free speech, and we have free speech in the UK as we do not have a communist government telling us what we can and cannot say.
I look forward to LT and the other publications dropping this foolish bit of content.
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Yes, well said Paul, if the truth hurts then so be it !
Has Mr Spencer not heard that Barwell wants to get rid of all private LL especially the mortgaged ones?
So first they attack the low hanging fruit mortgaged sole trader LL
Then they will come for the small corporate LL.
Then they will come for the mortgage free LL.
It is Tory Party policy to get rid of every private LL except if they are a large corporate.
They want as many tenants as possible becoming homeowners even though this is completely UNREALISTIC!!!
But this is what the Tories intend as Barwell has stated this and he is SPAD to the Maybot!!
The Tories have every intention to destroy the PRS.
They simply can't seem to work out that this aspiration is a pipe dream and will NEVER occur!
Like it or not the Tories need to change tack and recognise that a PRS of adequate size is required.
If Govt refuses to facilitate housing of all types of tenure then it is obvious that the PRS remains the only resource available.
With Govt trying to eradicate the PRS who is supposed to house those who can't afford or DON'T wish to become homeowners?
Then add in MASS UNCONTROLLED IMMIGRATION and it is obvious that with a net flood of about 250000 immigrants per year that there will be insufficient properties of all types of tenure.
It is unlikely that the floods of immigrants will change anytime soon.
Even if tomorrow there was magically 250000 properties it would only be sufficient for one year.
Then we have the loss of 2 million social homes to the ridiculous RTB policy.
The PRS has always been a flexible band aid that has provided accommodation in the absence of other types of property tenure.
Govt is now seeking to reduce the size of the band aid when really the band aid needs to be EXPANDED!!!
LL are now having their hands tied and many are now getting out of the PRS because of the bonkers Tory anti-private LL policies.
This Govt is so inept the worse thing being that a Labour Govt would be even more inept!!
Govt is still obsessed with the idea that getting rid of private LL will somehow translate into GR votes for the Tories.
NO it WONT!
They are completely incorrect.
The Tories are massively miscalculating politically.
Barwell is a disgrace.
He is damaging the fortunes of tenants and the housing sector in general and is responsible for ridiculous housing policy.
Will the Tories change policies on the PRS!?
No they WON'T.
They will introduce even more ridiculous ones!
Simplest,, call it out when judgement day comes round, hound councillors and local MPs, dont stop, keep it up. Give them the true facts and get them to answer truthfully, dont take waffle, if a straight forward question demands a Yes or No answer dont accept anything else, bore them hound them frustrate them annoy them and dont stop.
There’s no evidence that they will come after LTDS they introduced s24 to stear landlords into LTD structures so it’s easier to tax etc I really think it is going to far to say they are out to destroy PRS it’s simply too big and to adaptable. In time they will see the carnage that has been created and change stance as they always do I think they underestimate the importance and resilience of our industry.
Barwell has stated that he wishes to eradicate the PRS.
You carry on in your delusions thinking you are safe as a small corporate.
I wouldn't bet on it.
You might be proven correct.
But based on the drivel the Tories keep on spewing I would not say being a corporate LL will save you from the attentions of an idiotic Tory Govt.
But hey it is your risk and I hope you are correct.
Who knows Gavin Barwell isn’t even the housing minister anymore I’ll be honest non of us have a clue and wouldn’t put it past these parasites to go further.
I think you can bet on it that similar policies as used in Scotland will come to England and Wales.
A truly terrifying prospect.
I am just so glad that I am getting out of the AST market.
Lodgers all the way for me now.
No more S24 for a start!!!
Lodgers are the new way to earn yield.
Forget CG.
Not really possible until S24 is abolished.
I can't wait to sell up.
My tenants aren't looking forward to the prospect of being made homeless but then I have no alternative with S24 penalising a profitable business to make it unviable.
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